Cavan Ventures Inc. ("Cavan" or the "Company") (TSX VENTURE:CVN) announced today
that due to challenging market conditions, it has restructured its previously
announced proposed financing. Under the restructured financing, Cavan intends to
carry out a private placement (the "Subscription Receipt Private Placement") of
up to 16 million subscription receipts of the Company (each, a "Subscription
Receipt"). Each Subscription Receipt will be automatically converted into one
unit of the Company (each, a "Unit") upon the satisfaction or waiver of certain
escrow release conditions relating to the completion of the Company's previously
announced acquisition of a participating interest in the Crown King Silver
Project in Arizona, including TSX Venture Exchange approval thereof. Each Unit
consists of one common share of the Company and one-half non-transferable common
share purchase warrant of the Company. Each whole warrant will entitle its
holder to purchase one common share of the Company for a period of eighteen
months following closing of the Subscription Receipt Private Placement. The
Company expects to raise gross proceeds of up to $2,000,000 from the sale of the
Subscription Receipts, such proceeds to be held in escrow and repaid, with
interest, to subscribers if the escrow release conditions are not satisfied or
waived within 180 days following closing of the Subscription Receipt Private
Placement. 


In connection with the Subscription Receipt Private Placement, the Company has
engaged Portfolio Strategies Securities Inc. ("PSSI") to act as agent in
connection with the issuance of the Subscription Receipts on a commercially
reasonable best-efforts basis. PSSI may, at its option, purchase a portion or
all of the Subscription Receipts. The Subscription Receipts will be offered at a
subscription price of $0.125, with each whole common share purchase warrant
having an exercise price of $0.18. Additionally, the Company has granted PSSI an
option (the "Over-Allotment Option") to offer an additional number of
Subscription Receipts equal to 15 per cent of the number of Subscription
Receipts sold under the Subscription Receipt Private Placement. The
Over-Allotment Option is exercisable by PSSI at any time up to 48 hours prior to
closing of the Subscription Receipt Private Placement if the Subscription
Receipt Private Placement is fully subscribed. If the Over-Allotment Option is
exercised in full, the Company expects to receive additional gross proceeds of
$300,000. 


As compensation for acting as agent, PSSI will receive a cash commission equal
to 8 per cent of the gross proceeds from the Subscription Receipts sold
(including, if applicable, under the Over-Allotment Option), and compensation
warrants ("Compensation Warrants") to purchase a number of common shares equal
to 8 per cent of the Subscription Receipts sold under the Subscription Receipt
Private Placement (including, if applicable, under the Over-Allotment Option).
The Compensation Warrants are exercisable for a period of 24 months from the
date of closing of the Subscription Receipt Private Placement at an exercise
price of $0.18. Notwithstanding the foregoing, the Company has the option of
submitting a list of subscribers to PSSI sourced by the Company (the
"President's List"). Compensation payable to PSSI in connection with
Subscription Receipts sold to subscribers on the President's List shall consist
of a cash commission equal to 3 per cent of the gross proceeds raised from the
sale of such Subscription Receipts, and Compensation Warrants to purchase a
number of common shares equal to 3 per cent of such Subscription Receipts sold.
The Company has also agreed to pay certain of PSSI's expenses in connection with
the Subscription Receipt Private Placement. PSSI's engagement in connection with
the Subscription Receipt Private Placement remains subject to its due diligence
review to be conducted prior to the date of closing.


Concurrently with the Subscription Receipt Private placement, the Company will
be offering 3 million Units (the "Non-Brokered Units") in a non-brokered private
placement (the "Non-Brokered Unit Private Placement") for aggregate gross
proceeds of up to $375,000. The Non-Brokered Units will be offered at a
subscription price of $0.125, with a warrant exercise price of $0.18. The
Company may engage one or more finders in connection with the sale of the
Non-Brokered Units. Any finder(s) engaged by the Company may receive a cash
commission equal to 8 per cent of the gross proceeds raised from the sale of
Non-Brokered Units placed by them, and compensation warrants to purchase a
number of common shares equal to 8 per cent of the Non-Brokered Units sold under
the Non-Brokered Unit Private Placement. The Compensation Warrants are
exercisable for a period of 24 months from the date of closing of the
Non-Brokered Unit Private Placement. The gross proceeds from the Non-Brokered
Unit Private Placement are not subject to any escrow conditions.


In addition, the Company will be conducting a private placement (the
"Non-Brokered Flow-Through Unit Private Placement") of 2.5 million non-brokered
flow-through units (each a "Flow-Through Unit") for aggregate gross proceeds of
up to $375,000. Each Flow-Through Unit will consist of one common share to be
issued as a "flow-through share" for the purposes of the Income Tax Act
(Canada), and one-half common share purchase warrant. Each Flow-Through Unit,
previously priced at $0.16, will be offered at a subscription price of $0.15,
with a warrant exercise price of $0.20. The Company may engage one or more
finder(s) in connection with the sale of the Flow-Through Units on substantially
the same terms and conditions offered to finder(s) in the Non-Brokered Unit
Private Placement. The Compensation Warrants are exercisable for a period of 24
months from the date of closing of the Non-Brokered Flow-Through Unit Private
Placement. The gross proceeds from the Non-Brokered Flow-Through Unit Private
Placement are not subject to any escrow conditions.


The Company expects to raise aggregate gross proceeds of up to $3,050,000 from
the sale of the Subscription Receipts, the Non-Brokered Units and the
Flow-Through Units, and an additional $300,000 if the Over-Allotment Option is
exercised. The net proceeds from the Subscription Receipt Private Placement and
the Non-Brokered Unit Private Placement are expected to be used toward mineral
exploration activities, including the exploration and development of the
previously announced Crown King Silver Project in Arizona, which remains subject
to TSX Venture Exchange approval, and for working capital and general corporate
purposes. The net proceeds of the Non-Brokered Flow-Through Unit Private
Placement will be used in connection with exploration activities on the
Company's mineral properties located in Canada.


The securities issued under the Subscription Receipt Private Placement, the
Non-Brokered Unit Private Placement and the Non-Brokered Flow-Through Unit
Private Placement (collectively, the "Financing") will be subject to a statutory
hold period which will expire four months and one day from the closing date in
accordance with the rules and policies of the TSX Venture Exchange and
applicable Canadian securities laws and such other further restrictions as may
be applicable.


The Financing remains subject to receipt of all necessary approvals, including
approval from the TSX Venture Exchange.


About Cavan

Cavan Ventures Inc. is a Vancouver based TSX Venture Exchange-listed junior
mining company with acquisitions in Canada and Arizona, USA. The Company's
vision is to become a globally diversified resource company with strong focuses
in gold, silver, and rare earth elements. Cavan strives to become a mid-tier
producer through the acquisition and development of domestic and international
mining properties.


On behalf of the Board of Directors: 

Andrew Mah, President & Director 

This news release contains certain forward-looking statements that reflect the
current views and/or expectations of Cavan with respect to its performance,
business and future events. Such statements are subject to a number of risks,
uncertainties and assumptions. Actual results and events may vary significantly.